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The following information is from the 2017 Financial records of Dreyfuss Corp.

The following information is from the 2017 Financial records of Dreyfuss Corp.

Dreyfuss makes earplugs that they sell for $1 each

Amounts in US$ '000s

Revenue 400,000

Costs

Manufacturing Costs 220,000

Annual Costs of Office Staff and Rent 90,000

Production Consumables 2,000

Depreciation - Straight-line over 20 years 18,000

Property Taxes 5,000

Sales Commission 13,000

Other Overhead Costs 4,000

Total Costs 352,000

Net Income 48,000

Q1. Which costs are considered Fixed Costs?

Q2. What is Dreyfuss' breakeven level of revenue?

Q3. What is the margin of safety in dollars?

Assume prices and costs remain constant in 2018

Top Answer

Part A Fixed costs are Annual costs of office staff and rent 90,000 Production consumables 2,000 Depreciation 18,000 Property... View the full answer

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